After six blog posts going in-depth on the subject of using outcome metrics to measure nonprofit impact - why they’re important, why they’re elusive, what metrics they involve, and what it takes to track them - we hope that two things are clear:
- Nonprofits need to monitor their finances and program performance carefully, and then report on the outcomes extensively. Building trust with funders – donors, granters, members etc. – depends on being a transparent and accountable organization that turns investment into impact.
- Tracking outcome metrics takes data from all parts of the nonprofit integrated together and analyzed to understand how inputs (money, time, staff) translate into outputs (meals served, classes offered, members gained etc.).
To boil this down into a single takeaway: Nonprofits will need exceptional data management skills to keep attracting funding. Where does that leave your nonprofit?
Seeking a Partner in Success
For nonprofits with a small staff and lean resources, the idea of becoming a “data-driven” organization can seem daunting. Even large nonprofits struggle to turn their data into meaningful insights about performance. Does that mean nonprofits are doomed to a future of declining donor trust, where their real-world impact is always in question? Not necessarily.
Nonprofits that successfully leverage outcome metrics have two things working in their favor. First, a data-driven platform that spans all aspects of accounting and finance and extends into operations to track how programs perform. Collecting all the relevant data in one place makes outcomes explicit. It also expedites how nonprofits assess their outcomes thanks to the help of automation and analytics. Technology plays a major role in how (and how well) nonprofits begin tracking outcomes metrics. The system in place now probably isn’t adequate.
Which leads into the second asset a nonprofit needs: the right partner. Selecting an appropriate platform for tracking outcome metrics (not to mention handling the entirety of accounting) takes careful consideration of the options. That’s followed by an implementation and a reorienting of the organization around the new platform in place. Having the right partner to guide this process at each point couldn’t be more important – especially for nonprofits preparing to leverage data like they never have before.
AcctTwo – Making the Modern Nonprofit
As we said in our first post, this is an inflection point for nonprofits. They must accommodate rising expectations and rely on technology to meet them. Even if the mission and programming stay the same, the back-end of the organization must fundamentally change.
AcctTwo is here to help engineer that evolution. We offer a complete solution to nonprofits. That solution includes learning how to leverage nonprofit outcome metrics and KPI dashboards – but it extends to adapting the organization in whatever ways the people, processes, and technology call for.
Our expertise applies to nonprofits across the spectrum, helping everyone from churches to community organizations use best-in-class financial management software to propel (and prove) their success towards the mission. Read about how we helped these nonprofit and faith-based organizations overcome the same challenges you may be facing, including:
Adapt into a nonprofit equipped for the next era. Start the conversation with AcctTwo. Or use the button below to schedule a meeting at a time that works best for you.